Contribution Income Statement, Cost-Yolume-Profit Graph, and Taxes (LO2, 3)

New York Tours (NYT) provides daily sightseeing tours that include transportation, admission to selected attractions, and lunch. Ticket prices are $90 each. During June 2012, NYT provided 3,000 tours.

Variable Costs per Customer Fixed Costs per Month —
AGMISSIONG CCS eI Enea en ae $30, Operations 9. =e sic erin eae $25,000 EU TaYel neces cone Seer es een eee es ee ena 20 ~~ Selling and administration .......... 15,000 Overhead ees etsy. Ce tani ao snsncete 2 Selling and administrative ............ _ 8 Ota earner ine Seer kon ek, BA USE $70: “Total eee poe ee eee $40,000 NYT is subject to an income tax rate of 40 percent.
Required:
a.
SSsS Prepare a contribution income statement for June.
Determine NYT’s monthly break-even point in units.
Determine NYT’s margin of safety for June 2012.
Determine the unit sales required for a monthly after-tax profit of $15,000.
Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 4,000. Label the vertical in dollars with a maximum value of $400,000. Draw a vertical line on the graph for the current (3,000) unit level and label total SUAS costs, total fixed costs, and total before-tax profits at 3,000 units.